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Tale of the Tape

Zacks Equity Research

WestRock's (WRK) Beats Earnings, Revenues in Q4
November 07, 2016

WRK

Trades from $3

WestRock Company (WRK - Free Report) was formed from the merger of MeadWestvaco Company and Rock-Tenn Company on Jul 1, 2015. Headquartered in Norcross, GA, the company aspires to be the premier partner and unrivalled provider of paper and packaging solutions in consumer and corrugated markets.

WestRock will benefit from the synergies from the merger, acquisitions and further share repurchases. The Ingevity spinoff will better position the company to pursue its operating priorities and strategies. Moreover, the company stands to benefit from its investments in capacity, growth initiatives, joint venture with Grupo Gondi in Mexico and a shareholder-friendly capital allocation strategy. However, unfavorable foreign currency translation, merger related costs remains a concern.

Let’s have a quick look at the fourth-quarter fiscal 2016 earnings release of the company.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for WestRock for the fiscal fourth quarter 2016 has moved south over the past month. The Zacks Consensus Estimate for the quarter has gone down 2% over the past 30 days and currently stands at 62 cents. Coming to the earnings surprise, WestRock posted a positive average earnings surprise of 6.15% in the last four trailing quarters.

WESTROCK CO Price and EPS Surprise
 

Earnings

WestRock posted earnings of 71 cents per share in the fourth-quarter of 2016. Earnings handily beat the Zacks Consensus Estimate of 62 cents. Investors should note that these figures take out special items.

Revenue

WestRock posted revenues of $3,612 million in the reported quarter, ahead of the Zacks Consensus Estimate of $3,602 million.

Key Developments

WestRock stated that is has achieved $89 million in year-over-year productivity improvements and annual run rate of $500 million of synergy and performance improvements.

Zacks Rank

Currently, WestRock has a Zacks Rank #2 (Buy), but that could change following WestRock’s earnings report which was just released.

Market Reaction

WestRock’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back later for our full write up on this WestRock’s earnings report later!

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